Surety Bond Encyclopedia

Fringe Benefits ($75,000) Bond - Eastern Atlantic States Regional Council of Carpenters in Pennsylvania

Brief Summary

$75,000 is the bottom tier, not a flat number. Under the interior finish agreement with the Eastern Atlantic States Regional Council of Carpenters, the bond rises to $100,000, $125,000 or $175,000 as your workforce grows. If you have ten or fewer employees, this $75,000 bond is the one the funds ask for, and having it on file is what lets your crew start work.

The Eastern Atlantic States Carpenters Funds require contractors working in their jurisdiction to have a surety bond in place, and their employer FAQ says most agreements call for $75,000. In the IFCA agreement, Article 19, Section 8 sets $75,000 for employers with 1 to 10 employees, posted with the Trustees of the Funds when the agreement is signed.

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How to Apply for a Fringe Benefits ($75,000) Bond:

Count your employees and match the count to the bond table in your agreement.
Confirm the obligee wording with the Eastern Atlantic States Carpenters Funds Collections Department at 732-417-3900.
Provide the company's legal name and owner information for underwriting.
Sign the indemnity agreement and pay the premium.
Deliver the bond to the Trustees of the Funds at signing or within five business days of a Bond Notice.

Detailed Information About the Pennsylvania Fringe Benefits ($75,000) Bond:

$75,000 is the first tier

Article 19, Section 8(a) of the agreement between the Interior Finish Contractors Association and the Eastern Atlantic States Regional Council of Carpenters requires each employer, except as otherwise allowed by the Board of Trustees, to post a fringe benefit bond with the Trustees of the Funds when it signs. The amount depends on headcount:

1 to 10 employees: $75,000
11 to 25 employees: $100,000
26 to 35 employees: $125,000
36 or more employees: $175,000

The bond secures delinquent contributions, liquidated damages, costs of suit and attorney fees. That agreement covers Philadelphia, Bucks, Chester, Delaware, Montgomery, Lehigh, Northampton, Carbon and Lancaster counties in Pennsylvania, along with New Jersey, Delaware, most of Maryland, Virginia and Washington, D.C. The version published by IFCA ran May 1, 2023 to April 30, 2026, so ask for the successor agreement and check its bond table.

Personal liability for the signer

If the employer fails or refuses to post or keep the bond, the person who signed the agreement for the company agrees to be personally bound for the fringe benefit and delinquency obligations. Under Section 8(b), once the employer receives a written Bond Notice it has five business days to produce a compliant bond. After that the council may direct members to stop working for the employer.

Alternatives and extra bonds

Section 8(c) lets the trustees, in their sole discretion, accept bank letters of credit instead of a bond. Section 8(e) keeps their right to demand additional bonds from delinquent employers.

When your agreement says nothing

The funds' Employer Contribution, Audit and Collection Policy, effective November 1, 2023, says that if a CBA is silent on bonds the trustees may require an employer with a record of delinquencies, or one with no payment history with the funds, to post a surety bond or cash escrow before starting covered work. That bond is set by the trustees at not less than $25,000.

Day to day obligations

Contributions are due within ten days of the work week ending date, or by the 15th of the following month if the trustees authorize monthly payment. Late reports draw liquidated damages of 10% of the total fringe benefit contribution, per the funds' FAQ.

Eligibility and Requirements for a Pennsylvania Fringe Benefits ($75,000) Bond:

Bond of $75,000 for employers with 1 to 10 employees under IFCA Article 19, Section 8(a).
Higher amounts of $100,000, $125,000 or $175,000 as headcount rises.
Bond posted with the Trustees of the Funds in a form satisfactory to the Board.
Personal liability of the person who signed the agreement if the bond is not posted or maintained.
Additional bonds possible for employers that become delinquent.

Pennsylvania Fringe Benefits ($75,000) Bond FAQs:

Is $75,000 the amount for every contractor?

No. In the IFCA agreement it applies to employers with 1 to 10 employees. Employers with 11 to 25 employees post $100,000, 26 to 35 post $125,000 and 36 or more post $175,000. Other EAS agreements can set different terms, so read your own bonding article.

Can I work while the bond is being arranged?

The funds' employer FAQ says contractors working in their jurisdiction without a bond cannot perform work. Under the IFCA agreement you also have only five business days after a Bond Notice to produce a compliant bond.

What if I never post the bond?

The person who signed the agreement for the company becomes personally bound for the fringe benefit and delinquency obligations, and after a Bond Notice default the council may direct its members to stop working for you.

Can I give a letter of credit instead?

Section 8(c) lets the Board of Trustees, in its sole discretion, accept bank letters of credit in place of a bond. Ask before you apply.

My agreement has no bond clause. Am I clear?

Not necessarily. Under the November 1, 2023 collection policy, the trustees may still require a bond of at least $25,000, or cash escrow, from employers with no payment history or a record of delinquencies before work begins.